By Julie Johansen
The Emery County Business Chamber Subcommittee for Housing held their February meeting on Monday, Feb. 26 at the Castle Dale Building. The housing meetings have been focusing on components tied to housing such as land and water, and for this meeting, the emphasis was on financing. Ethan Migliori conducted the meeting and introduced Mark Sargent, Loan Officer with Zions Bank. Sargent spoke to the group via zoom from his office in Draper.
In his overview of housing financing, he gave a credit qualification outline. The first thing was a credit score to determine credit qualification. Sargent said a credit score of 620 is probably a minimum. Next was the debt to income ratio. Forty five percent debt load is recommended with 55% for other regular payments and living expenses. Then of course a down payment is usually required, though this depends on the debt requested, income and asset documentation.
Zions Bank does have affordable home loans. Mortgage Insurance is usually also required to protect the lender and can sometimes lower the amount of a down payment.
Questions from the group queried about loans on older homes, (over 40 years) like many of the homes in Emery County, including modular homes. Sargent replied that they must be manufactured since 1976 and on permanent foundations. Mobile homes need to meet HUD standards. Loans for remodeling will be construction loans, or home equity loans. Loan type is affected by down payments, and income.
The discussion moved to median income of Emery County residents, which is reported to a little less than $70,000 and median home prices seem to be between $200 and $300 thousand. This adds to the difficulty of securing financing, but can be worked out with lending institutions. The State Legislature is also working on help for affordable housing in rural, especially first time home owners. Zions Bank is willing to work with these government subsidies.
The next meeting of the housing committee is scheduled for March 18. It will focus on a report from the Southeast Regional Development Agency (SERDA) and their programs.